BUSINESS PLAN IN 2022:
Speaking at the meeting, Mr. Pham Dinh Truong - a Member of the Board of Directors and General Director of Viettel Construction said that Viettel Construction's revenue set out in 2022 is 8,586 billion VND, up 15.1% compared to 2021. Profit before tax is expected to reach 517.6 billion dongs, up 10% compared to 2021.
Mr. Pham Dinh Truong - General Director of Viettel Construction
Previously, Viettel Construction has been approved by Viettel Group to implement a plan to achieve revenue of 11,470 billion dong and pre-tax profit by 2025, reaching 517 billion dongs. The completion of the pre-tax profit plan in 2022 will mean that the Corporation completes the 5-year plan (period 2020-2025), bringing Viettel Construction to sustainable development and closer to the billion-dollar goal.
In 2022, the Corporation will perform a number of key tasks:
- Infrastructure Investment: This is the number 1 unit in Vietnam in terms of telecommunications infrastructure ownership (4,487 BTS stations, the sharing rate is 1.05). Revenue reached VND 342 billion, up 70.6% compared to 2021.
- Lĩnh vực VHKT: Optimizing labor productivity in Vietnam and other markets. The revenue target of the VH-KT segment is VND 5,110 billion (up 12.6% compared to 2021).
- Building sector: Revenue reached VND 2,333.8 billion (up 43% compared to 2021, of which revenue from contracts outside Viettel Group grew by 77%).
- Integrated Solution Area: Revenue reached VND 790 billion, bringing at least 3 new products into business such as VCC Smarthome, smart agricultural solutions,...
- Technical Services: Providing services to 500,000 households and 2,000 chain stores.
DIVIDEND DISTRIBUTION ACTIVITIES:
At the meeting, shareholders approved the 2021 dividend payment plan with 10% in cash and 23.1% in shares. To pay dividends in shares, Viettel Construction will issue another 21,465,414 shares (equivalent to 23.1% of the total number of existing shares).
Performance ratio 1000:231 (each shareholder owning 1,000 shares at the closing date of the list of shareholders will be rewarded with 231 new shares). Capital issued from an undistributed after-tax profit of Viettel Construction.
In addition, shareholders of Viettel Construction also elected two additional members of the Board of Directors for the 2020-2025 term, which are Mr. Do Manh Hung and Mr. Nguyen Quang Khai. In order to increase transparency and long-term sustainable development of the Corporation.
Photo of the Executive Board giving flowers and thanking the Board of Directors members
Previously, Viettel Construction received a resignation letter from Mr. Nguyen Thanh Nam - Chairman of the Board of Directors (due to busy tasks assigned by the Party and State at Viettel Group), and Mr. Bui The Hung - Member of the Board of Directors. Administrator cum Deputy General Director (due to busy work at other units).
DISCUSSION AT THE CONFERENCE:
Answering questions from shareholders about the business strategy for 2022 and orientation to 2025-2030, Mr. Pham Dinh Truong - General Director of Viettel Construction said that the core business of the unit is Infrastructure investment and mining operation. waterfall. In 2022, Viettel Construction will have two main investment strategies: the addition of a 5G telecommunications station for lease and the investment in fiber optic cable for sublease.
Viettel Construction is now preparing for infrastructure investment, to be ready for the 5G boom period. With 5G frequency, telecommunications infrastructure needs a large number of small cell stations, distributed throughout the country, so the value of 5G stations will also be at least twice that of 4G stations.
Shareholders receive a lot of new information about the development picture of Viettel Construction in the period of 2025-2030
In 2022, the Corporation will also focus on developing the B2C and B2B civil construction segments in the form of turnkey (from design, rough construction, interior finishing, and equipment installation to repair services).
The difference between Viettel Construction is the ability to deploy the civil construction field (XDDD) on a large scale, covering the district/communal level across the country, while there is not a single unit in the market that is capable of deploying it. . On the other hand, large enterprises in the field of construction only focus on the segment of B2B projects, which leads to a great opportunity for Viettel Construction before the construction market capacity grows by 7% per year.
A special thing about Viettel Construction in the B2C field is that it has a team of employees who are knowledgeable about the law and can connect with the government to apply for permits or advise households during the construction process. Linking with the top banks with preferential interest policies, supporting people to borrow capital when building.
Summary of questions at the Congress:
Shareholders: Bui Xuan Hung
- Question: How many BTS stations are expected to be invested in the 2023 plan? The Presidium answered questions from shareholders:
The Presidium answered questions of shareholders:
- In the 2022 plan, 2,500 BTS stations will be implemented, and 2,500 BTS stations are expected to be invested each year until 2025. In addition, the Corporation will invest in a fiber optic cable system for lease.
Shareholders: Minh
- Question 1: In the construction field, will the Corporation do EPC or turnkey or any other form?
- Question 2: With the tightening of capital for the Real Estate segment, will it affect the development plan of the construction segment in the future?
- Question 3: Does the Corporation intend to use more subcontractors for this segment?
The Presidium answered:
- Question 1: The Corporation is qualified to do the turnkey, in addition, the Corporation will support the legal procedures for the construction field. Regarding B2B, in 2022, in addition to performing rough construction, the Corporation will complete and provide integrated solutions.
- Question 2: The construction segment in Vietnam is expected to grow at 7% per year, so the market size is very large. The Corporation will focus on the construction market for people and construction for businesses. Construction revenue is expected to increase by 70% each year until 2022
- Question 3: The Corporation focuses on implementing the core, simple activities and will hire subcontractors according to the Corporation's quality standards.
Shareholders: Hoang Anh Tu
- Question 1: Does the Corporation update the progress of the head office investment project?
- Question 2: How does the Corporation deal with the escalating price of input materials?
The Presidium answered:
- Question 1: The Corporation will buy assets formed in the future (land and building construction), expected to be completed by the end of 2024.
- Question 2: The Corporation has a large-scale supply chain, making material price predictions, will help the Company control input prices.
Shareholders: Nguyen Duc Quang
- Question 1: The profit margin of the rental infrastructure segment is currently very good, will the raw material price inflation affect the profit margin of this segment?
- Question 2: Growth potential of IoT, 5G segment?
The Presidium answered:
- Question 1: The plan has been in place since the beginning of the year for the Corporation to calculate prices and purchase raw materials, minimizing the fluctuation of input prices. Therefore profit margin will be guaranteed.
- Question 2: Network operators will invest heavily in 5G, this is a great opportunity for the Corporation's development. The Corporation has prepared strategies, people, capital, and tools to anticipate the explosion of IoT and 5G segments.
Cổ đông: Hào
- Question: Is the profit plan for 2022 a bit modest?
The Presidium answered:
- The profit plan of 517 billion is to complete the 5-year strategy. The profit margin of the Corporation is about 5%, so with the revenue target of 8,500 billion VND, the profit is 517 billion VND. However, the Company strives to reach 10,000 billion in revenue in 2022, then profits will increase. The dividend is expected to be above 20%.
Shareholders: Nguyen Duc Hoang
- Question 1: Does the Corporation still keep the plan to receive BTS stations from Viettel?
- Question 2: In which area will the Corporation invest heavily in BTS stations? Station rental price?
The Presidium answered:
- Question 1: The Corporation still wants to receive stations from Viettel, but it has not been able to do this at the moment.
- Question 2: The Corporation will invest in stations in both urban and rural areas. Station rental price is about 7 million/station/month.
Shareholders: Minh authorized person
- Question 1: Strategy to develop the B2C construction segment?
- Question 2: Why was the result of the integrated solutions segment low in Q1?
The Presidium answered:
- Question 1: Currently, there is not a large enough unit in the field of civil construction. The Corporation will focus its strengths carrying out this segment including design consultancy, construction, and sale of integrated solutions and interiors for apartments.
- Question 2: The integrated solution includes renewable energy and is still waiting for the government's electricity price policy to have a source of work and revenue. Therefore, revenue from this segment grew negatively in the first quarter.